InMode Reports First Quarter 2023 Financial Results; Quarterly Revenue of $106.1M Represents 23.5% Year-Over-Year Growth

YOKNEAM, Israel, May 2, 2023 /PRNewswire/ -- InMode Ltd. (NASDAQ:INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the first quarter ended March 31, 2023.

First Quarter 2023 Highlights:

• Quarterly revenue of $106.1 million, an increase of 23.5% compared to the first quarter of 2022. InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 83% of quarterly revenues, while 8% came from InMode's hands-free platforms and 9% from InMode's traditional laser and non-invasive RF platforms.
• GAAP net income of $40.5 million, compared to $31 million in the first quarter of 2022; *non-GAAP net income of $44.7 million, compared to $34.1 million in the first quarter of 2022.
• GAAP diluted earnings per share of $0.47, compared to $0.36 in the first quarter of 2022; *non-GAAP diluted earnings per share of $0.52, compared to $0.40 in the first quarter of 2022.
• Record quarterly revenues from consumables and service of $20 million, an increase of 43% compared to the first quarter of 2022.
• Total cash position of $574.5 million as of March 31, 2023, including cash and cash equivalents, marketable securities, and short-term bank deposits.

*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation adjustments.

Management Comments

"As we celebrate the 15^th anniversary of the founding of our company, we are pleased to report a strong start to 2023, driven by growing demand for InMode's procedures. Our unique technology enables patients to achieve effective surgical results while benefiting of minimally invasive procedures," said Moshe Mizrahy, Chairman and Chief Executive Officer.

Shakil Lakhani, President of InMode North America, commented, "During the first quarter, we experienced significant growth in consumable sales. Revenue from consumables and service for the first quarter grew nearly 43% year-over-year. This is a strong indication that the platforms we sell are being used more frequently as the demand for our treatments continues to increase." 

"We have seen an influx of patients seeking treatment following the use of popular weight loss drugs. InMode's technology can effectively assist patients in tightening the loose skin post the effects of these medications," said Dr. Spero Theodorou, Chief Medical Officer.

First Quarter 2023 Financial Results

Total revenues for the first quarter of 2023 reached $106.1 million, an increase of 23.5% compared to the first quarter of 2022.

"We are happy to report substantial growth in Q1, while maintaining strong gross margins in what is traditionally a slower quarter for the aesthetics space. International sales were once again robust in the first quarter, with sales from Europe hitting a new record," said Yair Malca, Chief Financial Officer.

GAAP gross margin for the first quarter of 2023 and 2022 was 83%. *Non-GAAP gross margin for the first quarter of 2023 and 2022 was 83%.

GAAP operating margin for the first quarter of 2023 was 39%, compared to an operating margin of 41% in the first quarter of 2022. *Non-GAAP operating margin for the first quarter of 2023 was 43% compared to 44% for the first quarter of 2022. This slight decrease was primarily attributable to higher sales and marketing expenses, mainly as a result of the addition of new sales representatives as well as investment in direct-to-consumer advertising campaigns and hosting in-person events to support the company's growth projections.

InMode reported GAAP net income of $40.5 million, or $0.47 per diluted share, in the first quarter of 2023, compared to $31 million, or $0.36 per diluted share, in the first quarter of 2022. On a *non-GAAP basis, InMode reported net income of $44.7 million, or $0.52 per diluted share, in the first quarter of 2023, compared to $34.1 million, or $0.40 per diluted share, in the first quarter of 2022.

2023 Financial Outlook

Management provided an outlook for the full year of 2023 ending December 31, 2023. Based on current estimates, management expects:

• Revenue between $525 million and $530 million
• *Non-GAAP gross margin between 83% and 85%
• *Non-GAAP income from operations between $236 million and $238 million
• *Non-GAAP earnings per diluted share between $2.58 and $2.60

This outlook is not a guarantee of future performance and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.

*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation adjustments.

Use of Non-GAAP Financial Measures

In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, and non-GAAP operating margin. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency of its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release.

Conference Call Information

Mr. Moshe Mizrahy, Chairman and Chief Executive Officer, Dr. Michael Kreindel, Co-Founder and Chief Technology Officer, Mr. Yair Malca, Chief Financial Officer, Mr. Shakil Lakhani, President of North America, and Dr. Spero Theodorou, Chief Medical Officer, will host a conference call today, May 2, 2023, at 8:30 a.m. Eastern Time to discuss the first quarter 2023 financial results.

The Company encourages participants to pre-register for the conference call using the following link: 

https://dpregister.com/sreg/10177454/f8f5b01f02.

Callers will receive a unique dial-in number upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

For callers who opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.

U.S. Toll-Free Dial-in Number: 1-833-316-0562

Israel Toll- Free Dial-in Number: 1-80-921-2373

International Dial-in Number: 1-412-317-5736

Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=frYtrZ1j

At:

8:30 a.m. Eastern Time

5:30 a.m. Pacific Time

3:30 p.m. Israel Time

The conference call will also be webcast live from a link on InMode's website at https://inmodemd.com/investors/events-presentations/. A replay of the conference call will be available from May 2, 2023, at 12 p.m. Eastern Time to May 16, 2023, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers: 

Replay Dial-in U.S TOLL-FREE: 1-877-344-7529

Replay Dial-in Canada TOLL-FREE: 855-669-9658

Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088

Replay Pin Number: 6947972

To access the replay using an international dial-in number, please select the link below:

https://services.choruscall.com/ccforms/replay.html

A replay of the conference call will also be available for 90 days on InMode's website at https://inmodemd.com/investors/.

About InMode

InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.

Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the future performance described above under the heading titled "2023 Financial Outlook." Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, including with respect to the impact of the COVID-19 global outbreak. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 14, 2023, as well as risk factors relating to the COVID-19 global outbreak and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.

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SOURCE InMode Ltd.